control techniques in management.pptx
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Controlling is the process of evaluating actual performance against planned performance to ensure objectives are met. It is a continuous process and looks both backward and forward. A good control system ensures plans are implemented successfully, employees work with commitment, and resources are used optimally. Key control techniques include budgetary control, cost control, inventory control, break-even analysis, profit and loss control, statistical analysis, and audits. Control is essential for effective management.
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control techniques in management.pptx
- 1. Dr.S.BELLARMIN DIANA ASSISTANT PROFESSOR DEPARTMENT OF MANAGEMENT STUDIES BON SECOURS COLLEGE FOR WOMEN, THANJAVUR.
- 3. MEANING NATURE BENEFITS CHARACTERISTICS OF GOOD SYSTEM OF CONTROL IMPORTANT CONTROL TECHNIQUES
- 4. If planning is ‘looking ahead ‘,controlling is ‘looking back’ This is because if a task is not planned, it cannot be controlled. It may therefore, be said that ‘planning without control is useless and control without planning is meaningless’.
- 5. Backward looking Meaning to planning Appraisal or evaluation Pervasive function Forward looking too Continuous process
- 6. It ensures attainment of enterprise objective It highlight the quality of plans It ensures successful implementation of plans It ensures that employees work with commitment It provides scope for delegation It facilitates co-ordination It promotes efficiency.
- 7. Budgetary control Cost control Inventory control Break even point analysis Profit and loss control Statistical analysis External and internal audit Return on investment control Management information system
- 8. Sales budget Selling and distribution cost budget Production budget Production overhead budget Purchase budget Cash budget Master budget
- 9. “Budgetary control is system of control in which all activities of an enterprise are planned ahead in the form of budgets and actual results are compared with the budgetary standards and necessary corrective actions are taken in case of deviations”.
- 10. Planned approach Induces employees Proper co-ordination Optimum use of the available resource
- 11. A large number of accuracy Not allow flexibility Not guarantee result Not a substitute for management
- 12. “Thee process of controlling both direct and indirect costs of an enterprise in order to achieve cost effectiveness is what is known as cost control”.
- 13. fixed cost variable cost watchman’s material cost salary
- 14. Inventory constitutes a high proportion of the current assets of many concerns. inventory control essential to ensure an optimum level of inventory. Excessive inventory represents wasteful investment of capital.
- 15. The break-even point is that point at which total costs are equal to total revenue. break-even point means no profit and no loss.
- 16. FIXED COST BEP= CONTRIBUTION PER UNIT CPU=SELLING PRICE PU –VARIABLE COST PU BES=BREAK-EVEN(UNIT) SELLING PRISE PU
- 17. Fixed cost always remain constant Variable cost are always variable Number of units produced increases year after year All the units produced are sold
- 18. Profit and loss control is suitable for retail establishments , multi-product organization and so on.
- 19. Making a statistical analysis of business activities also helps to perform to control. average , correlation
- 20. EXTERNAL AUDIT: compulsory for companies , act 1956 qualified chartered accountant Auditor shows the true fair picture of profit or loss in balance sheet. INTERNAL AUDIT: company may have internal audit. under taken by company’s own staff
- 21. If the return conforms to the normal return expected for such a business. Return on Investment=Net Operating Profit Capital Employed
- 22. Information system Data(input) Processing Information (output)
- 23. HARDWARE: central processing unit monitor key-board mouse SOFTWARE: k7 power point ms office